JACK Dividend Type Payments

Jack In The Box, Inc dividend

Although JACK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Jack In The Box, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:10 PM ET):

Jack In The Box, Inc (JACK)
Bid Ask Last Change Volume P/E Market Cap
78.33 78.39 78.37 +0.88 126K 15 2.0B

JACK Dividend-Like Income Using Covered Calls

With JACK at 78.37, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 2.35 0.6
5% 3.92 1.1
10% 7.84 2.1

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On JACK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 85.00 0.25 24 1.0 6.61 (8.4%)
May 17 90.00 0.55 53 1.0 11.61 (14.8%)
5% Yield On JACK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 80.00 1.35 24 5.6 1.61 (2.1%)
May 17 85.00 1.35 53 2.5 6.61 (8.4%)
10% Yield On JACK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 80.00 1.35 24 5.6 1.61 (2.1%)
May 17 85.00 1.35 53 2.5 6.61 (8.4%)

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